While on Patrick Bet-David’s “PBD Podcast” earlier this week, tech executive Michael Saylor gave investors some prescient advice as the debt ceiling crisis leaves investors in a panic.

The whole system of traditional money may be caving in on itself.

“You need to own something the politicians can’t print more of.”

An insightful comment considering that, three days later, investors are rapidly selling off debt in preparation for a potential default.

What is the government sanctioned monetary system worth anymore?

But he notes, land and oil, the other go tos, can’t be transported as easily as cash or electronic credit.

And governmental land grabs, think eminent domain, aren’t at all unheard of.

“When you lose faith in the bank, currency, and the government. The answer is you can trust bitcoin. And at the end of the day, even if the Chinese wants to shut it down they can’t, if Russia wants to shut it down they can’t, if the US wants to shut it down, they can’t.”

Patrick notes three out of the four largest banks went out of business in the last 90 days, totaling over half a trillion dollars in losses.

So Patrick asks Michael, what should he do?

Saylor takes note of some of the worst economies, which have bad currencies, or bad money. Think Argentina, with close to 100% inflation. Every twelve months, your dollar loses half its value.

“You don’t have money if you don’t have strong currency.”

He notes the strongest currency is the dollar.

But with inflation creeping up, and default a distinct possibility, could the US dollar go the way of the Argentian one? It’s far from impossible, considering current economic trends.

“You shouldn’t have any money in the bank, you’re losing 7% of your wealth on a good year if it’s the dollar.”

And again, that is best case scenario.

Gold isn’t the way to go either. You can rely on gold having good value when inflation goes up. But what happens when an economy rebounds and inflation, even temporarily, is kept under control? The value goes down. Like cash, like credit, like currency, the value of your money is a constantly fluctuating one. It’s dependent on outer economies, governmental honesty and competency, and a host of other factors completely out of your control.

But bitcoin is run by incorruptible software, instead of highly corruptible people.

If you’re looking at economic trends, the US is not far from economic disaster. They’ve been on the brink a time or two before. But with a historically divided president and congress, there may be no deal reached on the debt ceiling. Or the US might plunge further and further into previously unheard of debt.

Keep both eyes open, and keep watching PBD:




 

 

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